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Bitcoin (BTC-USD) fell below $58,000 on Thursday for the first time since early May amid concerns that Mt. Gox would distribute large amounts of BTC to creditors. The German government has also moved its Bitcoin reserves to cryptocurrency exchanges.
this The world’s largest cryptocurrency down 5% In intraday trading, it later recovered to the $58,000 level. As of 1:21 PM ET, BTC is currently trading at $58.2K.
Bitcoin’s decline comes as defunct cryptocurrency exchange Mt. Gox’s wallet showed signs of activity for the first time in a month, with Germany’s Federal Criminal Police Office transferring more than 75 million to the cryptocurrency exchange, a CoinDesk report said Dollar.
The report further stated that the Mt. Gox wallet had been idle for a month but showed some activity testing transactions, which could be the company starting the distribution process to its creditors. It is widely believed that payments will be made in crypto tokens.
Media reports said the payment included approximately $9 billion worth of tokens.
Lucy Hu, senior analyst at Metalpha, said: “One of the main reasons for the price decline is that the German government transferred more than $50 million to cryptocurrency exchanges, triggering market selling speculation.”
Earlier in the day, BTC also fell below the 200-day moving average.
Cryptocurrency-related stocks also fell: Marathon Digital (MARA) -5.2%Coinbase Global (COIN) -1.1%Riot Control Platform (RIOT) -1.5%MicroStrategy (MSTR) -1.4%CleanSpark (CLSK) -4.6%.
